Debt and Loan: Using a Loan for Purposes Other Than Its Intended Objective

Practical Laws of Islam as per the teachings of Imam Khamenei

Debt and Loan: Using a Loan for Purposes Other Than Its Intended Objective

English:

Question #1774:

Is it permissible to spend a loan that was procured for a particular purpose in other avenues?

Answer #1774:

If what the bank gives the individuals is really a loan and stipulates that it should be spent for certain issues, it is not permissible to violate the stipulation. Also, if one receives some money form the bank as silent partner to be invested in a certain project, he cannot use the money in another project.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Debt and Loan